Global Impact of US Credit Downgrade

Monday, August 08, 2011

Standard & Poor's Headquarters in Lower Manhattan, New York City. Standard & Poor's Headquarters in Lower Manhattan, New York City. (Wikipedia Commons)

The credit rating agency Standard and Poor's downgraded the United States' credit rating for the first time in its history, from AAA to AA+, last Friday. This news sent shock-waves around the globe, sending markets into free-fall, and forcing global leaders into emergency meetings.

Amar Bhide, professor at Tufts University's Fletcher School of Law and Diplomacy, and author of "A Call for Judgement: Sensible Finance for a Dynamic Economy," believes this downgrade will have little affect on the global economy, unlike the current European debt crisis. 

Guests:

Amar Bhide

Produced by:

David J Fazekas

Comments [1]

listener

Would the US be talking about debt reduction if the Democrats still controlled Congress? Didn't the President's budget last February which was rejected by the Senate 97-0 attempt to raise the debt by ten trillion with no debt reduction plan offered by him ever since? Is the national debt forecasted to be even higher in five years and reaching $20 trillion in ten years? How can that possibly improve future credit ratings?

Aug. 08 2011 08:26 AM

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